Why the Second-Highest Gold Prices Ever Witnessed Were Achieved Last Quarter

FinancialNewsMedia.com News Commentary -

PALM BEACH, Fla., May 27, 2022 /PRNewswire/ -- In the gold universe, the World Gold Council Gold Demand Trends reports are the industry's bible. The latest covering Q1'22 was discussed in a Seeking Alpha article. The article said that the latest report covering Q1'22 revealed worldwide gold-mine output climbed a strong 2.6% YoY to 856.5 metric tons, or 27,537k ounces. Quarterly average gold prices blasted 4.8% higher to $1,879 between Q1'21 to Q1'22! That's certainly good incentive to maximize production to take advantage of great gold prices. Last quarter actually saw the second-highest gold prices ever witnessed after Q3'20's $1,912. It continued saying: "The major gold miners fared pretty-well fundamentally last quarter. Their long struggle failing to overcome depletion continued, with more production shrinkage like usual. But despite lower output and monetary-inflation pressures, the GDX top 25 still held the line on all-in sustaining costs. Those didn't climb proportionally, helping higher prevailing gold prices boost earnings. Gold-mining profitability last quarter was among the highest on record, and ought to improve further this year. The gold miners are mostly forecasting improving outputs along with lower costs ahead… That's how gold and gold stocks usually work during material stock-market selloffs, powering higher on balance as general stocks weaken… With inflation raging, gold and its miners' stocks are the best investments now. History has proven that true regardless of stock bears and Fed rate hikes."  Active Companies in the markets today include Tocvan Ventures Corp. (OTCQB: TCVNF) (CSE: TOC), Magna Gold Corp. (OTCQB: MGLQF) (TSXV: MGR), Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR), Minera Alamos Inc. (OTCQX: MAIFF) (TSXV: MAI), Argonaut Gold Inc. (OTCPK: ARNGF) (TSX: AR).

The article added: "And gold-futures speculators' fears of Fed rate hikes are supremely-irrational. The Fed's thirteenth hiking cycle of the modern monetary era since 1971 is underway. Gold actually thrived in the previous dozen, averaging hefty 29.2% gains during their exact spans! Fed tightening are bullish for gold and therefore its miners' stocks because they are bearish for general stocks, greatly bolstering gold investment demand. So for hardened contrarians able to buck unreasonable herd fear, this recent big-and-fast gold-stock drawdown is a fantastic buying opportunity. Rather than succumbing to groupthink on this sector, smart traders should consider the major gold miners' fundamentals and outlook.  Gold-mining profitability last quarter was among the highest on record, and ought to improve further as this year marches on. The gold miners are mostly forecasting improving outputs along with lower costs in coming quarters. That is really-bullish for earnings growth with gold prices highly-likely to keep climbing on balance in this raging inflation."

Tocvan Ventures Corp. (OTCQB: TCVNF) (CSE: TOC) BREAKING NEWS - Tocvan Drills 63.4-meters of 0.6 g/t Au and 11 g/t Ag, including 29.9-meters of 0.9 g/t Au and 18 g/t Ag at Pilar, Main Zone Extension -  Tocvan Ventures Corp.  (the "Company") is pleased to announce drill results from its Pilar Au-Ag Project in Sonora, Mexico. Results for core drill holes JES-22-61 and JES-22-64 are provided in this release, both Main Zone extension targets infilling a gap and stepping out from holes JES-22-59 (116.9m at 1.2 g/t Au) and JES-22-62 (108.6m at 0.8 g/t Au) (see Figure 1). JES-22-61 returned 63.4-meters at 0.6 g/t Au and 11 g/t Ag, including 29.9-meters at 0.9 g/t Au and 18 g/t Ag. Within the broader mineralized interval, consistent gold mineralization was recorded within a silicified sulphide-bearing breccia returning 8.9-meters at 2.1 g/t Au, 45 g/t Ag and 6.1% Zn, the highest consistent base-metal mineralization drilled to date (see Plate 1). JES-22-64 was successful in intersecting a broad anomalous gold zone, indicating mineralization continues further to the southeast.

A total of 1,562 meters of Phase III drilling has been completed in nine drill holes providing key information across the Main Zone and 4-T Trend. Results for two drill holes are pending.

Drill Highlights

JES-22-61 (Core)

• 63.4m at 0.6 g/t Au and 11 g/t Ag, from 60.8m
• Including 29.9m at 0.9 g/t Au and 18 g/t Ag, from 60.8m
• Including 8.9m at 2.1 g/t Au, 45 g/t Ag and 6.1% Zn, from 81.8m

JES-22-64 (Core)

• 107.3m at 0.1 g/t Au, from 60.3m – Anomalous Zone on trend with JES-22-62
• Including 44.8m at 0.2 g/t Au, from 93.2m

"Drilling southeast of our Main Zone continues to return excellent gold and silver values in intensely silicified breccia-hosted mineralization.", commented Brodie Sutherland, CEO. "Once again, the orientation of drilling has maximized success through this extension zone returning consistent values that warrant more drilling to fully evaluate the potential of the area. We are excited to evaluate the next steps at Pilar as we continue to move the project forward." 

Discussion of Results - As part of the Phase III program, nine drill holes have been completed totalling over 1,562 meters (Figure 1). Drilling looked to expand the Main Zone through 25, 50 and 100-meter step-outs to the southeast in a gap zone that has seen little drilling focused on the main trend between hole JES-20-32 (94.6m at 1.6 g/t Au) and hole JES-21-50 (39.7m at 0.96 g/t Au). Drilling also covered the 4-T Trend testing below trench T-21-3, which returned 19.5 meters at 0.61 g/t Au.

Drill hole JES-22-61 was successful in intersecting a significant zone of gold with broad mineralization in a silicified andesite host (63.4 meters of 0.6 g/t Au, including 29.9 meters of 0.9 g/t Au). The intersection included a silicified breccia zone grading 2.1 g/t Au, 45 g/t Ag and 6.1% Zn over 8.9 meters. This is the highest-grade base metal mineralization recorded to date. The broader low-grade interval correlates with mineralization in the Main Zone Trend, 85-meters southeast of JES-22-59 (116.9m of 1.2 g/t Au) and 50-meters northwest of JES-22-62 (108.6m of 0.8 g/t Au).

Drill hole JES-22-64, a 35-meter southeast step-out from JES-22-62, intersected a broad anomalous zone of 107.3-meters at 0.1 g/t Au. Mineralization looks to continue to the southeast, further drill testing along the trend will be required to confirm.  CONTINUED…  Read this full release for Tocvan Ventures at:  https://tocvan.com/investors/news-releases/ 

Other recent developments in the mining markets include:

Magna Gold Corp. (OTCQB: MGLQF) (TSXV: MGR) recently reported the maiden mineral resource estimate (the "Resource") for the Margarita silver deposit at its 100% owned Margarita Project (the "Margarita Project") in Chihuahua, Mexico.

Highlights Were: Indicated mineral resources are estimated to be 1.854 million tonnes ("Mt") at 204.9 g/t Ag and Inferred mineral resources of 0.454 Mt at 153.4 g/t Ag above a 75 g/t Ag cut-off grade; Includes Indicated resources of 12.22 million ounces ("Moz") of Ag and inferred resources of 2.24 Moz Ag.; Margarita Vein High Grade Core – The deposit contains a well-defined high-grade core that demonstrates excellent continuity. Resources contained within this core are estimated to be 0.78 Mt @ 332.1 g/t (Indicated) for a metal content of 8.32 Moz of silver; Strong Resource Growth Potential – Our first pass drill program focussed on defining the mineralization contained within the Margarita vein. This structure remains open in all directions and at depth. Our drill program also discovered and confirmed the presence of multiple parallel vein systems most notable of which were the Juliana and Caido veins.

Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR) recently announced its consolidated financial results for the first quarter of 2022. Amounts presented are in Canadian dollars, except where otherwise noted.

Q1 2022 Financial Highlights Were: 18,251 GEOs earned (Q1 2021 – 19,960 GEOs); Consolidated revenues of $59.4 million ($66.9 million in Q1 2021); Revenues from the royalties and streams segment of $50.7 million ($66.9 million in Q1 2021, including $17.9 million from offtakes); Revenues from the mining exploration and development segment (i.e. Osisko Development Corp.) of $8.7 million (net of intersegment transactions); Consolidated cash flows from operating activities of $23.6 million (Q1 2021 – $21.3 million); Operating cash flows from the royalties and streams segment of $40.5 million (Q1 2021 – $36.7 million); Operating cash flows from the mining exploration and development segment of ($16.9) million (Q1 2021 – ($15.4) million); Cash margin of 94% from royalties and streams (Q1 2021 – 94%); Consolidated net earnings attributable to Osisko's shareholders of $0.3 million, or $0.00 per share (Q1 2021 – $10.6 million or $0.06 per basic share); Consolidated adjusted earnings⁴ of $2.2 million, or $0.01 per basic share (Q1 2021 – $17.9 million, $0.11 per basic share); Adjusted earnings from the royalty and stream segment of $24.8 million, or $0.15 per basic share (Q1 2021 – $23.4 million, or $0.14 per basic share); and Adjusted loss from the mining exploration and development segment of $22.7 million, or $0.14 per basic share (Q1 2021 – $5.5 million, or $0.03 per basic share).

Minera Alamos Inc. (OTCQX: MAIFF) (TSXV: MAI) recently provided a 2021 year-end summary of the ramp-up of mining activities at the Santana gold mine in Sonora, Mexico. Through the end of 2021 approximately 9,100 ounces of gold were mined and stacked on the leach pad during the first phase of the project mining activities. The total exceeded the Company's initial mine opening projections and provides a sufficient amount of mining, crushing and leaching data to allow for final optimization of the operation through the last stages of ramp-up.

Operational highlights through the end of 2021 were: Gold inventory moved to the leach pad - 9,100 oz; Mine production rates approaching the 100,000 tonnes of mineralized material per month initial target for the project ramp-up; Cumulative gold recovery from mineralization under leach for more than 30 days exceeds 70% with additional recovery ongoing; Total area of stacked mineralization under finished/active leaching remains in excess of 50% and continues to expand; and Low reagent consumptions in line with previous test pad results (~0.2 kg/t NaCN and <2 kg/t lime).

Argonaut Gold Inc. (OTCPK: ARNGF) (TSX: AR) recently announced its operating and financial results for the first quarter ended March 31, 2022. For the first quarter 2022, the Company reports production of 55,516 gold equivalent ounces² ("GEO" or "GEOs"), revenue of $105.8 million, cash flow from operating activities before changes in non-cash operating working capital and other items of $25.1 million, net income of $5.6 million or earnings per basic share of $0.02, and adjusted net income³ of $8.2 million or adjusted earning per basic share³ of $0.03. All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The Company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.

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